Bitcoin is a fast, P2P, decentralized, trustless, low-cost, secure, exchange mechanism. It is not a store of value, digital gold, or any other sacred title that people bestow upon it. And until people realizes this and stop praying to it, it will not be adopted as a means of legal tender. In addition, it will hold back deployment and it will continue to be a cause for conflict for the foreseeable future. This is a critical observation that must be clear in people’s minds as it becomes closer to being accepted, improved, and utilized.
In a report by a Morgan Stanley research division dated October 31, its writers called Bitcoin a “New institutional investment class.” This was the first time any bank acknowledged Bitcoin as anything positive to the financial world. Google searches about Bitcoin and how to buy it became top searches for 2018 despite the bear market and public negativity. Crypto investment firm Bitwise’s CEO Hunter Horsley observed a 20% investment growth from existing clients and further inflow from new investors. All of this points to the expansion of public awareness, raising interest towards crypto currencies and their potential. And it’s critical that perception about usage changes to keep pace with Bitcoin’s capabilities improvements.
The Lightning Network is coming. According to 1ML.com, the number of nodes in the network grew by 10% and payment channels by 43% – both within a month. That’s not counting the proposals to increase block sizes and other enhancements. Then there are major projects also working on scalability like EOS, Cardano, Ziliqa and the Ethereum network. Ethereum in particular has a multi- prong scalability approach with its Casper, Plasma, and Sharding solutions. In addition, there are other lesser known projects in the works from independent companies. For example, Cosmos, polkadot, Algarond, Teranode, etc. All aiming to raise the number of transactions per second (tps) from the few thousands to Trillions.
Most people see Bitcoin as a second place universal coin and prefer other coins like Dash, Monero, Zcash and Bitcoin Cash as the future global cryptocurrency. The media has ingrained the belief that altcoins are faster and private. However, this all is about to change; developers like Dr Ago Akinyele (developer of ZCash) plans to bring privacy features to Bitcoin. Dr. Akinyele wants to “retrofit” Bitcoin and Litecoin with BOLT – a bidirectional protocol that shields and obscures transactions, balances, and sender’s information. This will make using Bitcoin just as attractive as the next coin.
Bitcoin is a system of exchange between individuals without the need for costly intermediaries. It doesn’t serve any purpose sitting in wallets or custody vaults. It is fungible to the 9th decimal place. One dollar equals 28, 262 Satoshis; This gives it huge flexibility for any size transactions. Users can pay for something as small as publishing a single digit without incurring costly fees. Unfortunately, a corporate vision is replacing the original concept and turning it into a tradeable asset. With special interests and instituional custodians in charge of its valuation.
People need to see Bitcoin as a stablecoin with no frivolous valuation. The public must understand that overvalue is responsible for the market crash and volatility. Without unmerited value, the market would stabilize and holding would be unnecessary. Lastly, usage will speed adoption and make for a faster transition into a new digital monetary era.